Reynolds American amends loan to permit note repayment, issuance

By Sara Rosenberg

New York, July 19 - Reynolds American Inc. amended its credit facility, allowing for the repayment of outstanding notes with cash and the issuance of new notes within 10 months of the existing notes' maturity, according to an 8-K filed with the Securities and Exchange Commission on Monday.

In addition, the amendment increased to $20 million from $15 million the amount of real property and related assets that may be disposed of under the covenant restricting the sale of assets.

Also, the amendment modified the covenant relating to the amount of cash, marketable investments and investment equities that a non-guarantor subsidiary, that is not a domestic subsidiary, is permitted to hold for five consecutive business days.

The amendment was effective on July 15.

JPMorgan is the administrative agent on the deal.

Reynolds American is a Winston-Salem, N.C.-based manufacturer and seller of cigarette and other tobacco products.

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